Financial Daily from THE HINDU group of publications Thursday, Aug 12, 2004 |
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Logistics
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Airlines Jet launches online system to release more apex seats Ambar Singh Roy
Kolkata , Aug. 11 EVEN as the battle for the apex fare turf intensifies, Jet Airways has introduced an automatic and dynamic online yield management system that facilitates the release of additional seats for the apex quota based on time-specific occupancy patterns of the past. To begin with, the online yield management system has been introduced on the airline's flights ex-Mumbai. According to sources, apex fare tickets were on offer on about 10-15 per cent of the seats on specific flights. Despite this nearly 40 per cent of the seats on many flights were going empty. This was because the airline's focus was to monitor yields, although manually. "One can take low-yielding traffic only after achieving a break-even," the sources said, and added that earlier no seats were released to accommodate the demand for apex tickets after the quota was exhausted. According to them, Jet Airways' passenger load factors ex-Mumbai had gone up following the introduction of the online yield management system. The system delves into the history of the flight for the last two years. If it realises that there is demand for a few 30-day apex tickets and the flight history shows that it had gone light earlier at that time of the year, it releases a few seats for the apex category automatically. The same is repeated for for 21-day and 15-day apex fare tickets. With this, the incremental demand for apex fare tickets is met even as care is taken to ensure optimal and efficient yield management. "Apex fare tickets offer very low yields for airlines. But they are better than offering on-the-spot discounts. With more capacity on offer than demand, no one is going to buy tickets in advance from the airlines directly or from the travel agents," the sources said.
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